Panoro Energy (PEN) Q3 2024 earnings summary

Executive summary

• Achieved record production in 2024, surpassing 13,000 bopd, with full-year average expected at 10,000 bopd due to later start-up of new wells in Equatorial Guinea.

• Q3 2024 production averaged 9,400 bopd, generating $36 million in revenue and $23.7 million in EBITDA; nine-month revenue reached $178.8 million with $101.4 million EBITDA.

• Diversified operations across Gabon, Equatorial Guinea, and Tunisia, with ongoing development, exploration, and new discoveries supporting future growth.

• Significant portion (40%) of 2024 liftings scheduled for Q4, supporting a record year and expected to boost full-year financials.

• Shareholder returns remain robust through NOK 50 million Q3 cash distribution and ongoing share buyback program.

Financial highlights

• Q3 2024 revenue was USD 36 million, EBITDA USD 23.7 million, and net profit USD 0.3 million; nine-month revenue USD 178.8 million, EBITDA USD 101.4 million, net profit USD 24.4 million.

• Ended Q3 with USD 18.7 million in cash and net debt of approximately USD 51.8 million.

• 2024 capital expenditure guidance increased to USD 95 million due to expanded drilling in Gabon and Equatorial Guinea.

• Average realized oil price year-to-date was USD 80.36/bbl.

• Gross debt at 30/09/24: USD 70.5 million; RBL facility matures 2028 at SOFR +7.5%.

Outlook and guidance

• Full-year 2024 working interest production expected to average 10,000 bopd, with 3.5 million barrels lifted and 40% of annual volume in Q4.

• 2025 capex expected to drop to USD 40 million as major drilling campaigns conclude.

• Free cash flow anticipated to increase as capex declines and production remains strong.

• Reserve replacement for 2024 expected to exceed 100% due to new Gabon discoveries.

• Hedges in place for Q4 liftings at an average floor price of USD 70.9/bbl.